Advertisements
Advertisements
प्रश्न
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Advertisements
उत्तर
As a custodian of the cash reserves of the commercial banks, the central bank maintains the cash reserves of the commercial banks. Every commercial bank has to keep a certain percentage of its cash reserves with the central bank by law.
APPEARS IN
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control?
The rate of which commercial banks borrow from the Central Bank is the:
The central bank controls credit _____ .
______ is a quantitative method of credit control.
Which of the following is not a quantitative method of credit control?
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
During inflation, the central bank usually:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What do you mean by credit control?
